Tokyo stocks seen moving little, politics in focus

Tokyo, May 29: Tokyo stocks are seen moving little in thin trade on Tuesday, with investors facing a lack of new trading factors a day after major world stock markets were closed for holidays.

Politics may be a focus for the market after a scandal-tainted minister in Prime Minister Shinzo Abe's cabinet committed suicide on Monday, compounding problems for Abe ahead of a July election.

Stock markets in the United States, Britain and Germany were all closed for holidays on Monday. As a result, trade here could remain thin, said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

''There aren't really a lot of factors to move the market at the moment,'' Nishi said. Trade activity is likely to remain weak.'' Volume on the Tokyo exchange's first section slumped to its lowest in two months on Monday.

Analysts have said that a setback for Prime Minister Abe's pro-market government in July's upper house election could sour foreign investors on Japanese stocks.

However, Nikko Cordial's Nishi said politics was likely to have little immediate impact.

''Of course if there is a crushing defeat (for Abe) in the upper house election and reform is derailed, that's another matter.... But at moment, this will have a limited impact.'' The Nikkei is likely to move between 17,400 and 17,650 on Tuesday, market participants said.

The benchmark ended up 0.61 percent at 17,587.59 on Monday.

The FTSEurofirst 300 index of top European shares ended 0.1 percent higher on Monday, with France's CAC 40 up 0.23 percent.

U.S. and British markets were closed for holidays.

Stocks To Watch

The electronics maker will start buying computer microprocessors from Advanced Micro Devices Inc., pitting the U.S. chipmaker against rival Intel Corp., as part of efforts to cut costs, the Nikkei business daily said on Tuesday.

NEC Electronics Corp.

Two U.S. funds have urged NEC Corp. to cut its stake in semiconductor unit NEC Electronics to below 50 percent from 70 percent now, the Nikkei business daily reported on Tuesday.

Sanyo Electric Co. Ltd.

Sanyo Electric Co. posted a swing to an annual operating profit after cost cuts more than offset slow digital camera sales, but forecast an unexpected earnings decline this year due to higher raw material prices.

NTT DoCoMo Inc., FamilyMart Co. T> Japan's top mobile phone operator said on Monday it would buy 3 percent of convenience store chain FamilyMart Co. as it moves to enable more shoppers to use its electronic payment services.

Teijin Ltd., Toho Tenax Co. Ltd. T> Teijin said on Monday it would make Toho Tenax a wholly owned unit in a 0 million stock deal aimed at strengthening its carbon fibre business.

Sumco Corp. T> Sumco, the world's No. 2 silicon wafer maker after Shin-Etsu Chemical Co. Ltd., on Monday raised its first-half operating profit forecast by 24 percent to above market expectations, citing strong demand for advanced wafers from memory chip makers and a softer yen.

Tsumura&Co. T> Tsumura will spend 25-30 billion yen to expand a factory in Ibaraki prefecture to meet growing demand for its traditional herbal medicines, the Nikkei business daily reported on Tuesday.

Reuters>